Uniqlo Written Proposal
Introduction to Business
Written Proposal
Introduction:
This report is about Uniqlo’s competitive environment using Michael Porter’s Five Force Model. Uniqlo is a Japanese company which engages in designing casual wear clothes, manufacturing clothes and retailing clothes. Uniqlo in Hong Kong has established a profitable business constantly recording extremely high sales on a per store basis. Uniqlo offers fashionable and high quality clothing at reasonable prices, and was seized as an opportunity to establish a brand position domestically and internationally.
1. Existing Rivalry
1.1 Number of direct competitors:
Gap, Bossini, Zara, Giordano, and H&M are the direct competitors of Uniqlo. As the numbers of direct competitors are higher; the existing rivalry of Uniqlo is strong.
1.2 Market Structure
Uniqlo’s market structure is monopolistic competition. There are large numbers of competitors of Uniqlo in the market such as Gap, Bossini, Giordano, Zara and H&M, etc. They sell similar products. And each of them sets prices of similar products at comparable levels.
1.3 Rivalry
There are many famous international retailing, manufacturing and clothing companies like Uniqlo are running their business in Hong Kong. All are trying to manufacture high quality products to compete to attract customers. Because of this Uniqlo have large number of competitors in the market, thus, the rivalry is keen.
From the above three points, we can know that Uniqo’s existing rivalry is keen.
2. New Entrants 2.1 Technological barriers
Uniqlo‘s competitors such as Gap, H&M and Zara are using online shopping method to sell its products. But Uniqlo Hong Kong does not have an online shopping method; it will be hard for it to compete. It will lose some of its customers who purchase online. It will decrease Uniqlo’s sales. This is a disadvantage for Uniqlo.
Uniqlo is the only company in Hong Kong which is selling Heattech; Heattech is a unique highly
Written Proposal
Introduction:
This report is about Uniqlo’s competitive environment using Michael Porter’s Five Force Model. Uniqlo is a Japanese company which engages in designing casual wear clothes, manufacturing clothes and retailing clothes. Uniqlo in Hong Kong has established a profitable business constantly recording extremely high sales on a per store basis. Uniqlo offers fashionable and high quality clothing at reasonable prices, and was seized as an opportunity to establish a brand position domestically and internationally.
1. Existing Rivalry
1.1 Number of direct competitors:
Gap, Bossini, Zara, Giordano, and H&M are the direct competitors of Uniqlo. As the numbers of direct competitors are higher; the existing rivalry of Uniqlo is strong.
1.2 Market Structure
Uniqlo’s market structure is monopolistic competition. There are large numbers of competitors of Uniqlo in the market such as Gap, Bossini, Giordano, Zara and H&M, etc. They sell similar products. And each of them sets prices of similar products at comparable levels.
1.3 Rivalry
There are many famous international retailing, manufacturing and clothing companies like Uniqlo are running their business in Hong Kong. All are trying to manufacture high quality products to compete to attract customers. Because of this Uniqlo have large number of competitors in the market, thus, the rivalry is keen.
From the above three points, we can know that Uniqo’s existing rivalry is keen.
2. New Entrants 2.1 Technological barriers
Uniqlo‘s competitors such as Gap, H&M and Zara are using online shopping method to sell its products. But Uniqlo Hong Kong does not have an online shopping method; it will be hard for it to compete. It will lose some of its customers who purchase online. It will decrease Uniqlo’s sales. This is a disadvantage for Uniqlo.
Uniqlo is the only company in Hong Kong which is selling Heattech; Heattech is a unique highly
References: Uniqlo’s Hong Kong Website: viewed between 14 Dec 2011-22 Dec 2011 http://www.uniqlo.com/hk/ Uniqlo Fast retailing: viewed on 19 Dec 2011 http://www.fastretailing.com/eng/group/strategy/uniqlobusiness.html Uniqlo’s business strategy: viewed on 19 Dec 2011 http://www.fastretailing.com/eng/group/strategy/tactics.html Uniqlo’s suppliers’ information: viewed on 20 Dec 2011 http://www.uniqlo.com/us/corp/model/ The competition bill policy: viewed on 16 Dec 2011 http://www.policyaddress.gov.hk/10-11/eng/p107.html